Businesses rely on human resource as an essential that brings a significant difference in performance and productivity which eventually contribute to gaining a significant competitive edge. A committed and motivated workforce is continuously dedicated to heightening the level of performance in Fidelity Investments (FI) that necessitate increased profitable outcomes. As a way to ensure a reduction in the gap that exists between policy formulations, organizations such as FI should focus on attaining comprehensive HR management. Hiring, incentive and compensation, training and development are the main HR practices which are applied to help in meeting the set goals and objectives of an organization. Many HR managers are making significant efforts to improve employees’ productivity. However, with the dynamically changing work environment across the world, there still exists a gap between HR practices and policies which severely affect organizational performance. Therefore, the paper aims at examining the gaps that exist between policy and practice in the HRM process of Fidelity Investments.
HR Gaps between Policy and Practice
The business path is defined by the HR policy at the organizational level and harmonization of policy and practice is crucial in the management of human resources. According to Jackson, Randal, and Kaifeng (21), the holistic success of a particular organization requires gaining deeper insights into the adopted HR policies which significant impact on performance and productivity. A business policy from the HR context implies the procedure used to manage and treat personnel. Evaluation of the HR policies in Fidelity Investments which are classified under a control-centric environment is necessary to make sure that proper coordination is achieved which contributes to the attainment of set goals as well as objectives. HR policies of an organization directly influence and shape the HR practices. Bratton and Jeff appreciate that the development of employee-centric practices influences the selection of HR practices (109).
HR policies provided the necessary guidelines with the intended overall direction of organization particularly in HR responsibilities that require the implementation of appropriate practices (Jackson, Randal, and Kaifeng, 21). The four HR policies that are usually adopted include job design, training and development, staffing and performance management. For instance, at FI, a good example of a policy on job design include committed HR approach that focuses on achieving employees who are performance-centric and who can operate as per the expected needs and expectations. Different HR tools such as an annual performance review are usually adopted to demonstrate unique organizational actions that aim at effectively managing employees. There is a high probability that there will be adherence to the set guidelines whenever the HR system is control-oriented (Kulik, 130). FI should align its HR policies with practices as for maintaining a competitive in the dynamic world of business. Reduction of the gap between policies and practices require more focus on activities such as reminding employees on a consistent basis the importance of meeting the set goals and objectives (Leigh and Edward, 28).
At Fidelity Investments there is a substantial gap formulation of policies and their successful implementation in the HR function as managers face a variety of challenges during the application process and thus, the need to investigate these limitations and establish recommendations to address the issues of mismatch between policies and practices. There is an increased concern to hire and retain the targeted employees with qualities and experiences that align with the formulated policies. Line managers are tasked with the responsibility of ensuring the effective implementation of the HR practices whose prospects can be divided into actual and expected outcomes (Jackson, et al., 21). Establishing appropriate action plans by policy-makers includes the intended practices used for harnessing business performance level. Development of practices that align with the business strategy is the direct role played by top management. An in-depth analysis of whether the actual outcomes of designed practices meet the priorities set within the (Jackson, et al., 21). As a result, the reduction of the mismatch between policies developed and the HR practices depends on the collaboration between line managers and top management.
Through the valuation FI HR gaps, it will be easy to understand the potential obstructing factors that can result in failure for businesses that operate both locally and internationally. A critical element that leads to the gaps in time whereby the management spend much of the time in making sure that the financial targets are met. The line managers focus on fostering profitability and deviate from the HR responsibilities (Jackson, et al. 21). As a result, there is a considerable concern on the potential risk of line managers not to focus on the policies due to the failure to perform the essential tasks assigned to them. Another cause of the gaps in Fidelity Investments include the contradictory demands and varying priorities between organizational objectives and established policies. The sustainability of business functions require proper execution of tasks and responsibilities by the line managers and is affected by the significant role played by human resource managers at the operational level which affects alignment with overall objectives of the firm (Jackson, et al., 21).
Areas of Opportunity
The existing gaps in HR practices and policies in FI requires a significant shift in the operational process. From the findings of Ostroff and David (197) the focus on cross-cultural competency from an organizational perspective is important when executing roles and responsibilities. The need for evidence-based management process has been identified from the analysis of the gaps. Fidelity Investments should re-capitalize the financial management processes which are the key to the successful execution of its operations in the HR department. Furthermore, a sustainable avenue should be established to allow effective integration of local context and scientific evidence (Shields, 27). An implementation of the evidence-based approach can be a significant step to improving the level of employees' expertise through the development of excellent policies at the organizational level to allow increment in its competitiveness in the marketplace.
Through the evidence-based approach, the organization has become familiar with the basic empirical evidence that can lead to cross-cultural competency within the global marketplace. Internationally, it has become apparent that there is a gap in the evaluation of cross-cultural challenges that may emerge in expansionary strategies. The evidence-based approach to policy formulation will lead to the achievement of a diverse working environment in Fidelity Investment and eventually lead to navigation within the global spectrum. The evidence-based practices will lead to the creation of a considerable value via acquisition, development and retention of HR. HR practitioners should be willing to focus on meeting cross-cultural requirements at FI through improvement of staffing practices as a way to loosen the gap between policies and practices (Ostroff and David, 197). In the international markets, several multinational companies have failed due to ignorance on the need for the knowledge regarding cross-cultural differences. Hence, effective human resource management requires an organization to invest significantly in knowledge competency (Shields, 27). To navigate in the international spectrum, the existing beliefs on inter-personal practices of human resources should be re-evaluated to increase opportunities for attracting a competent and committed workforce. The HR practices should be aligned with the policy development process by collecting sufficient information that can lead to the establishment of two approaches including compensation practices and general employment.
General Employment Practices
The process of knowledge management has been successful in FI through the adoption of evidence-based practices that result in the fruitful formulation of policies. As a result, there is an increment inaccessibility to vital information used in handling conflicting issues such as the cross-cultural differences (Ostroff and David, 197). The effective employment practices to adopt in Fidelity Investment may involve commitment towards cross-cultural competence and considerable efforts towards global resourcing of talents (Shields, 27). This initiative will contribute towards aligning managerial knowledge and competency along with accepting the use of technology during the recruitment and hiring process. Potential candidates that meet the requirements of the business can be scrutinized using information from the internet platform and thus generate a reliable foundation for the employment activity.
Compensation Practices
To properly execute assigned tasks and responsibilities, employees require proportionate remunerate which increases their enthusiasm. Organizations achieve positive outcomes in their operations when the compensation packages and benefits are motivating employees to improve performance and productivity which allows the company to become competitive in the marketplace. Successful business operations in Fidelity Investments requires the involvement of employees in the knowledge base (Ostroff and David, 197). Employees should be given competitive packages on a continuous basis as has a direct positive impact on the execution of tasks and responsibilities. Motivated employees who focus on complying with the formulated policies will always demonstrate cultural competency.
Impact of the HR Policy and Practice Gap on the Business
Widens the gap sustainability of operational management and employee welfare management: unnecessary emphasis performance deteriorates implementation of viable policies that can favor the welfare of employees at the organizational level. Increased focus to meet the financial targets has negatively affected the need for consistent definition and improvement of the workforce at FI (Bratton and Jeff, 126). As a result, retention of employees becomes difficult. Nevertheless, failure to address the needs and expectations of employees has led to underperformance. The organization has implemented effective HR policies that consider the personal welfare of the staff but poor communication skills and inadequate interaction continues to heighten the level of disgruntled individuals.
Ineffectiveness in Adapting to the Changing Marketplace
Fidelity Investments experience challenges in the stimulation of innovation in its working environment which could boost its competitiveness in the marketplace. Hence, then there is no excellent research and development to determine the needs and expectations of customers because employees are resistant to any changes recommended for implementation (Kulik, 130). Failing to communicate about the policies on business advancement have led the organization to lag behind within the financial sector. The employees are critical for conducting high-quality research and ensuring adaptive practices are adopted. The business policies at Fidelity Investments clearly outline for the relevance of innovation towards sustainable business practices.
Importance of Addressing the Gaps
Ensuring Continuous Improvement
Successful outcomes in an organization require alignment of policies and practices that lead to continuity of operations and improved productivity (Evans, 81). In both the local and international market, an expansionary approach needs to include in Fidelity Investments' future plans of action. The technique encourages continuous improvement through clarification on performance and alignment between policies and practices in HR.
Cost Cuts on Training and Development
Fidelity Investments spends an enormous amount of finance in training and development despite the fact that the program is important for career advancement of its employees. However, as the management focuses on ensuring that the firm has people with the required skills, knowledge, abilities and expertise, there is need to cut on the costs incurred in training and development (Evans, 82). The top management will be required to make considerable efforts towards enhancing alignment between the clearly outlined training policies and the set operational dynamics. The cost and benefits of conferencing and mentorship programs should be weighed effectively before investing a lot of funds in them and when developing a training platform, the business mandate should be considered.
Creation of the Norms of Performance Management
There should be transparency and openness in the norms of performance management. In Fidelity Investments employees do not access the required performance regarding their performance and there is inconsistency in the provision of immediate feedback from supervisors and top management. To achieve the organizational objectives, documentation of performance targets is a significant step and there has to be connection personnel behavior with the HR policies (Shields, 27). Managers should not be reluctant in communicating the set targets as well as performance review policies. HR managers at Fidelity Investment should focus on ensuring direct communication of issues regarding remuneration, benefits and rewards that can foster a heightened level of motivation.
Recommendations to Improve HR
Fidelity Investment should ensure that there is a transfer of knowledge between departmental workers which helps in ensuring continuity with minimal impact on the remaining employees’ performance and effectiveness. Additionally, it is paramount to actively seek out new and innovative strategies for engagement and connection of the workforce who will concentrate on attaining organizational goals and focus more on positive results rather than conflicts and complains at all times (Bratton and Jeff, 126). It is also recommendable that a Fidelity Investment should roadmap itself towards establishing an employee-focused human resources plan connects to the overall strategic plan to contribute significantly to employee engagement and productivity. Establish an employee assistance program. The stress factors should be eliminated to ensure that the human resource has a minimum focus on their responsibilities accompanied by establishing a flexible staffing model to improve the HR practices. Another important initiative involves encouraging effective communication which has a positive on employee job satisfaction.
Collaboration and stimulating work environment encourage an exchange of opinions, ideas and conflicting issues among the workforce and the management which is based upon open communication and can thus improve the HR practices (Jackson, et al., 21). Another recommendation involves caring about the workers' well-being and involvement of the individuals through practices such as recognition of both collective and individual performance. There is also the need to encourage or create team spirit to motivate the employees who will work collaboratively to increase productivity. It is vital to have a positive energy flow between co-workers and depends on a good communication and ability to deal with tensions and conflicts. There should be the provision of training opportunities which will help in deepening employees' knowledge and specialization in a specific period because training programs are always considered win-win solutions. Robust collaboration mechanisms should be developed to foster diversity in the workplace along with the creation of incentives to aid in the retention of targeted skills as well motivation of the staff towards the desired direction of practice (Kulik, 130). Another important action-step may include designing a framework for performance management in a manner that connects staff output to the developmental results. The initiatives should favour mobility, flexibility, improve work quality and enhance leadership development in human resource department. Nevertheless, there should be a change of technology used by HR which should be followed by restructuring of the HR, reform of the remuneration system, implementation of an appraisal system and establishing tools that will promote information accessibility.
Impact of the recommendations on business and productivity
The overall success of an organization solely relies on employee performance. Fulfilment of employees' salary including the provision of sufficient salary, retirement or savings options, paid time off, healthcare and advancement opportunities will increase the chances of higher productivity (Leigh and Edward, 28). This comes as a result of reduced turnover together with better communication across all levels of the organization. A greater use of HR practices is associated with higher levels of employee commitment and contribution and is in turn linked to higher levels of productivity and quality of services (Evans). A better relationship between an organization's requirements and individual's ability is dependent on the use of a sophisticated recruitment and selection system. Improving human resource is directly related to performance variables including innovation, efficiency and effectiveness. Furthermore, quality training and development result in superior skills, abilities, knowledge, behavior and attitude of employees. To attain innovative and high-quality products or services, human resources play an integral role. When the workers are satisfied with the terms and conditions of the work then the organization will get the more chance of getting the higher production and productivity.
Conclusion
Successful business operations depend on the productivity of employees and the department of HR plays an essential role to ensure an organization has a performance-centric workforce. From the evaluation of Fidelity Investment, it is evident that there is a mismatch between practices and policies which severely affect the operations of HR. A re-examination of its operations from performance management to skill retention is necessary. Through an alignment of the HR policy and practice, there should be an integration of employee welfare management. This step will lead to a collaborative and stimulating work environment that encourages the exchange of opinions, ideas and conflicting issues among the workforce and the management which is based upon open communication and can thus improve the HR practices. The overall success of an organization solely relies on employee performance. Fulfilment of employees' salary including the provision of sufficient salary, retirement or savings options, paid time off, healthcare and advancement opportunities will increase the chances of higher productivity.
Works Cited
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Jackson, Susan E., Randall S. Schuler, and Kaifeng Jiang. "An aspirational framework for strategic human resource management." The Academy of Management Annals 8.1 (2014): 1-56.
Kulik, Carol T. "Working below and above the line: the research-practice gap in diversity management." Human Resource Management Journal 24.2 (2014): 129-144.
Leigh, Nancey Green, and Edward J. Blakely. Planning local economic development: Theory and practice. SAGE publications, 2016.
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